BBVA's Sabadell Bid Faces Criticism; S&P Calls Merger Manageable, Urges 20% Exchange Ratio Improvement

Analysts from Alantra have expressed strong criticism regarding BBVA's takeover bid for Banco Sabadell, urging the bank to enhance its exchange ratio by 20%. In contrast, S&P Global Ratings has assessed that the merger would be 'manageable' and would not negatively impact market conditions. Furthermore, S&P anticipates that Spain will lead GDP growth in the Eurozone from 2025 to 2027 and does not foresee the merger affecting competition in the banking sector. Analysts at RBC suggest that BBVA's adjustment to its takeover offer appears to correct a prior miscalculation, rather than facilitate overcoming regulatory challenges. Additionally, S&P sees potential for further mergers among medium-sized banks beyond BBVA's bid for Sabadell.